Apartment Rent Growth Accelerates Year Over Year

Article originally posted on HERE on November 30, 2021

Led by metro areas in Florida and the Pacific Northwest, average monthly apartment rents increased 13% nationwide over the past year, the highest growth rate in at least two years, according to Redfin. However, median annual growth for mortgage payments was even larger at 17%.

At a metro level, rent price increases outpaced mortgage payments for new homebuyers in 29 of the 50 largest markets in the U.S. during October. Metros in Florida, Washington State, Oregon, Texas and New York exceeded 30% annual growth.

“Fast-rising rents could contribute to inflation woes,” said Redfin chief economist Daryl Fairweather. “Employees facing higher rents are likely to demand higher compensation from their employers, which could in turn lead to even more inflation down the line. Skyrocketing rents in some of the most desirable cities suggest that there is an overall shortage of homes, and not just of homes for sale.”